Ladies and gentlemen, thank you for standing by, and good evening. Thank you for joining Sohu's Second Quarter 2021 Earnings Conference Call. At this time, all participants are in listen-only mode. After management's prepared remarks, there will be a question-and-answer session. Today's conference call is being recorded. If you have any objections, you may disconnect at this time. I would now like to hand the conference over to your host for today's conference call, Huang Pu, Investor Relations Director of Sohu. Please go ahead. Thanks, operator. Thank you for joining us today to discuss Sohu's Second Quarter 2020 Results. On the call are Chairman and Chief Executive Officer, Dr. Charles Zhang, Chief Financial Officer Joanna Lv, and Vice President of Finance, James Deng. Also with us today are Changyou Chief Executive Officer Dewen Chen and Chief Financial Officer, Yaobin Wang. Before management begins their prepared remarks, I would like to remind you of the company's safe harbor statement in connection with today's conference call. Except for the historical information contained herein, the matters discussed on this call may contain forward-looking statements. These statements are based on current plans, estimates, and projections, and therefore, you should not place undue reliance on them. Forward-looking statements involve inherent risks and uncertainties. We caution you that a number of important factors may cause actual results to differ materially from those contained in any forward-looking statement. For more information about the potential risks and uncertainties, please refer to the company's filings with the Securities and Exchange Commission, including the most recent annual report on Form 20-F. Please also be reminded that Sohu's results of operations have been excluded from our results from continuing operations. Retrospective adjustments to the historical statements have been made in order to provide a consistent basis of comparison. Unless indicated otherwise, the results that we talk about are related to continuing operations only. With that, I will now turn the call over to Dr. Charles Zhang. Charles, please proceed. Thank you everyone for joining our call. For the second quarter of 2021, despite the negative impact of COVID-19, we kept exploring new monetization opportunities while strictly controlling the budget. Thanks to the out-performance of our online game business, our profitability exceeded the prior guidance. For Sohu Media, we focused on innovating our products and technology and effectively promoting the generation and distribution of high-quality content. For Sohu Video, we continued to execute our twin engine strategy of developing high-quality long-form and short-form content, while at the same time refining our advanced live broadcasting technologies and rolling them out to various applications. We're also able to diversify our revenue sources and better capture advertising budgets by integrating our live broadcasting technologies into our unique events. For Changyou, online games performed well during the quarter, and its revenue exceeded the high end of our prior guidance. Let me now go into more details about these businesses. We'll go into each business in a moment, but now, let me first look at the quick overview of financial performance. For the second quarter of this year, total revenue is $204 million, up 28% year-over-year and down 8% quarter-over-quarter. Brand advertising revenue is $37 million, down 3% year-over-year and up 20% quarter-over-quarter. Online game revenue is $151 million, up 43% year-over-year and down 14% quarter-over-quarter. GAAP net income from continuing operations attributable to Sohu.com Limited was $22 million, compared with the net income of $11 million in the second quarter last year, and net income of $32 million in the first quarter of this year, 2021. Non-GAAP net income from continuing operations attributable to Sohu.com Limited was $25 million, compared with net income of $12 million in the second quarter last year and $37 million in the first quarter of this year. Lastly, please be noticed that for the GAAP and non-GAAP net income for the second quarter of last year mentioned above, an additional withholding income tax accrual of $88 million of Changyou has been excluded. Now let me go through some of our key businesses. First, Media Portal and Sohu Video. For Sohu Media Portal, we continued to innovate our products and technologies. We stimulated the organic generation of premium content and further enhanced our social network distribution features. We kept extending the presentation form of our content and introduced audio feature in this quarter on the Sohu Tech 5G and AI Conference we hosted in May. We rolled out an exclusive new feature called Sohu AI Anchor. By integrating Sohu's advanced technology, AI technology, we can synthesize the image and the voice of a well-known celebrity star using artificial intelligence, AI. We've embedded the AI anchor in a certain channel, with a 24-hour channel, with the Sohu News app, where viewers can catch up with real-time news and hot events. Also added an audio function into the news feed and into each article, enabling users to listen to articles and updates of their choice at any time. These initiatives have comprehensively improved the audio-visual experience of the Sohu News app, and allow users to more easily consume our news and premium content with their limited time. For Sohu Video, we continue to develop compelling long form and short form content with the twin engine strategy. For original content, we launched The Mysterious Love, an original drama combining idol, romance, and crime themes, and became a big hit during the quarter, attracting a lot of public attention and further boosting our subscriber base and revenues. For the short form content and the live broadcasting, we kept optimizing our advanced live broadcasting technologies and its operations, and we consolidate our strength in live broadcasting and committed to the reporting of major breaking news events and emergencies witness live streaming in real time. It further reinforce our brand advantage and influence as a mainstream media platform. Moreover, we've also combined the advantages of both our Sohu Media and Sohu Video platforms, kept exploring new monetization opportunities by integrating advanced live broadcasting technologies into our unique and creative content marketing campaigns. For example, in July, we successfully hosted the Sohu News Snow Mountain Expedition, which immersed the users in a unique and visually spectacular mountaineering experience over a five-day period of non-stop live broadcasting. The participants, including pop stars and celebrities, shared their feelings interacting with audience throughout the live streaming on our platform during the ascent, during the climbing. The live stream content allowed us to create a great derivative content, all of which turned the expedition into an eye-catching event, a real-time event for audiences and advertisers. By creating and providing these unique marketing opportunities, we're able to better meet advertisers' demands and capture their budgets. Next, turning to Changyou. For the second quarter of 2021, Changyou launched new expansion packs of both TLBB PC and Legacy TLBB Mobile. These updates proved to be well received by players and helped the overall performance of our online games to remain stable, which is better than we expected. As a result, revenue from our online game business exceeded the high end of our prior guidance. For PC games, we launched a series of in-game events for regular TLBB PC to celebrate its anniversary. We also launched a new dungeon for TLBB Vintage and improved the game based on player feedback. For mobile games, we launched an expansion pack for the anniversary of Legacy TLBB Mobile with some holiday events and upgraded its graphics. Thanks to these efforts, both user engagement and payments remained stable, and revenue was broadly flat on a sequential basis. Next quarter, we'll continue to roll out our new content for TLBB PC and Legacy TLBB Mobile to sustain the vitality of these games. For new games, Changyou launched a licensed card game called Little Raccoon: Heroes on August 4th, two days ago. It performed well so far. In terms of pipeline, several key games are being developed and fine-tuned, and we'll introduce them to players later. Looking forward, looking ahead, we'll continue to execute our top game strategy, promote innovation and roll out more high-quality mobile games, including MMORPGs and games in other genres. Now, let me turn the call to Joanna, our Chief Financial Officer, who will walk you through our financial results. Joanna? Thank you, Charles. I will now walk you through the key financials of our major segments for the second quarter of 2021. All of the numbers that I will mention are all on a non-GAAP basis. You can find the reconciliation from non-GAAP to GAAP measures on our IR website. For Sohu Media Portal, quarterly revenues were $22 million, down 3% year-over-year and up 21% quarter-over-quarter. The quarterly operating loss was $28 million, compared with an operating loss of $18 million in the same quarter last year. For Sohu Video, quarterly revenues were $23 million, up 1% year-over-year and 16% quarter-over-quarter. The quarterly operating loss was $13 million compared with an operating loss of $10 million in the same quarter last year. For Changyou, quarterly revenues, including 17173, were $154 million, up 41% year-over-year and down 14% quarter-over-quarter. Changyou posted an operating profit of $75 million, compared with $37 million in the same quarter last year. For the third quarter of 2021, we expect strong advertising revenues to be between $35 million and $39 million, online game revenues to be between $145 million and $155 million, non-GAAP net income from continuing operations attributable to Sohu.com Limited to be between nil and $10 million, and GAAP net income and loss from continuing operations attributable to Sohu.com Limited to be between a net loss of $4 million and a net income of $6 million. This forecast reflects our current and preliminary view, which is subject to substantial uncertainty. Lastly, please be reminded that in the Q&A section, we won't take questions regarding any Sohu business updates or the agreements with Tencent for Sohu's privatization. This concludes our prepared remarks. Operator, we would now like to open the call to questions. Certainly. Ladies and gentlemen, we will now begin the question-and-answer session. If you wish to ask a question, please press star one on your telephone keypad and wait for your name to be announced. We have the first question coming from the line of Eddie Leung from Bank of America Merrill Lynch. Please go ahead. Good evening. Thank you for taking my questions. Would like to get a sense on the recent regulation changes, the impact on your advertising business. We know that there has been a tightening on the education as well as the property sectors. Wondering how important these two sectors are to your advertising business and what could be the impact to the business. I know that you guys are already providing a third quarter guidance. Just wondering if we do not have the tightening on these sectors, how will the third quarter look like? Similarly, also a follow-up question about regulation on games. Wondering what would be the percentage of revenue from the young people in the second quarter for Changyou. Thank you. Eddie, you mentioned two sectors, right? Education and what? What's the second sector you said? Property. House. Property. Well, in our portfolio of advertisers, we don't have a lot of education companies advertising. Our advertising revenue is not impacted by the recent regulation development on education. Probably property, a little bit impact. Since our revenue base is still relatively small, so it's not a major factor. On Changyou, basically the question is about Changyou's users, whether young people or the recent regulation on young people. Our major products are designed for mostly adults. contributions from teenagers are very few, nearly zero. A lot of old users who are already in their 30s or 40s, or even 50s. Got it. Thank you, Charles, and Dewen. Thank you. Shall we move to the next question? The next question comes from the line of Alicia Yap from Citigroup. Please go ahead. Hi. Thank you. Hello. Good evening, Charles and management. Thanks for taking my questions. I have two questions. First one is, can you elaborate what is the effective tax rate for Changyou entity that is currently paying, and does Changyou actually entitled to the key software enterprise tax rate? Would there be any changes to effective tax rate in the coming quarters? Second question is, I just want to get your opinion, Charles, given your experience and years of operating internet companies in China. What is your view of this latest tightening regulatory measure? What are some of the outcomes you foresee could evolve for the industry, and how is Sohu positioned in the current environment? Any potential impact to our current business model? Thank you. Several of our subsidiaries will apply and enjoy some preferential tax rates if they receive the Key National Software Enterprise status. Our applications this year were not approved. For High and New Technology Enterprise, status are still okay. In the future, we expect there will be 4%-5% impact on this issue. Yeah. Regarding the regulation, internet regulation, I think what happened recently is more company specific. I don't see any, on a general policy side, tightening or any change. I see definitely there were some more regulation on user privacy and others. I think it should be done, because it's important. I think the entire industry will continue to develop robustly and there's still a lot of things to be done. A lot of new products need to be developed and roll out. I see. Thank you, Charles. Thank you, Dewen. Can I just quickly ask one follow-up? I think according to some of the media's interview, you did mention there is an intention for future, potentially, that Changyou could be listed in Hong Kong. Just wondering, any timeframe for this plan? Thank you. Yeah. During my interview, I did mention that, yeah, there's possibility then next year, yes. Okay, great. Thank you, Charles. We have the next question coming from the line of Thomas Chong from Jefferies. Please go ahead. Hi. Good evening, management. Thanks for taking my questions. I also have a question regarding the advertising space. Can management comment about our thoughts on the auto or advertising outlook? Given that, I think auto represents about 1/3 of our ad revenue. Just want to see how it is trending in Q3, because we are seeing the production capacity of a lot of OEM is suffering these days. Our second question is regarding our targeting technology. I think, Charles Zhang, you also talk about our content strategies, the short form and the long form strategies that we do the targeting. Given that the regulations are also talking about, maybe there will be more stringent regulations on targeting, should we expect our content distribution to be affected if these rules are implement? Also, I also have a third question relating to the gaming sector in general. How should we think about the gaming regulations? Should we expect that the gaming space is expected to be relatively stable or relatively steady, if we think about the regulatory impact other than the minor protection? Thank you. Yeah. The first two questions, let me answer. The auto industry, I think there is some problems, like the shortage of chips, right? I think in Q3, the auto industry, not too good, not too bad. It seems flat, right? Flattish. Yeah. In terms of content distribution, we rely more on the editorial distribution, also social media distribution. Targeting is not a large part of our products, so it's no problem, I think. Yeah. Our videos, long form and short form, and also our video side is also exploring social media distribution. Yeah. In terms of game sector, I think my answer will be similar, because I think it's more company specific. It's not overall I don't see any regulation change or Yeah. Right? Yeah, sure. Got it. Thank you, Charles. Once again, ladies and gentlemen, as a reminder, it is star followed by one on your telephone keypad if you wish to ask a question. Once again, it is star one on your telephone keypad to ask a question. Ladies and gentlemen, that does conclude our conference call for today. Thank you all for your participation. You may disconnect now.